The Policy Bazaar Show is a brand- new series that decodes the grey areas of purchasing insurance. Through the 26-episode series, the show will highlight and discuss a magnitude of topics essential to everyone trying to secure their future. From purchasing the right cover, to switching policies while shifting jobs, to ensuring a comprehensive child cover, insurance experts deliberate, simplify and shine light on the complexities of purchasing insurance in India.
In this week’s episode, our eminent anchor Vivek Law will be talking about the evolution of the insurance sector with Vibha Padalkar, Managing Director and CEO of one of India’s leading insurance companies, HDFC Life Insurance. Taking her mother as an idol, Vibha has been a part of the insurance sector for more than a decade. Today, she is one of the most lauded leaders of the insurance industry.
What drives one to buy insurance?
It has been a challenge for the insurance companies in India to be accepted by the population. Today, owing to the millennials taking up the charge of securing their future at an early stage of life, there is a widespread growth in the insurance sector. The insurance companies are trying to tap into the ecosystem that a millennial relates to and the kind of lifestyle choices one makes. The government has also introduced schemes like the Pradhan Mantri Jivan Jyoti Yojana (PMJJBY) and Ayushman Bharat. These initiatives by the government helps in promoting insurance investment and makes the common man aware of the need to buy an insurance.
Insurance companies, in the recent times, have been working towards making the process of buying an insurance cover, a customized experience for the buyer. Most of the insurance companies have varied products and distribution channels that help reach varied customer segments. They have tailor-made simple products that can easily convince a millennial to invest in a policy. It becomes easy for the buyer to choose from products available at the rates of INR 500/ month. Insurance players also tie up with small finance banks to reach a consumer base in the rural parts of the country.
Digitizing the Insurance Sector
The digitization of the insurance sector has majorly helped the finance and insurance sector as they have allowed a large part of the population to have easy access to policy buying and proper knowledge about all the products available in the market. The digital space also allows the insurance companies to do a research on the consumer based on his digital footprint including his online presence. Companies like HDFC Life Insurance also use the digital space to understand the current trends and launch products and covers that cater to the trending issues. One of the most premium examples of this can be ‘Cancer Care’ that not only provides a variety of covers but also makes the onboarding process easy.
In addition to digitizing the sector to be closer to the consumer base, the insurance sector has also ensured that the reasons often given for not buying insurance are taken care of. There are covers that have premiums as low as 10-15 INR and can then be upgraded according to the situation. However, to avoid frauds, the sector deems it important for the customer to have proper documents and identification proofs.
Watch to know more about the evolution of the insurance sector in the past decade.